Insider Stock Buying Of Tianli International Holdings Delivers Return On CN¥6.72m Investment

Simply Wall St · 10/16 07:55

Tianli International Holdings Limited (HKG:1773) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 16% decline in the stock price. Even after accounting for the recent loss, the CN¥6.72m worth of stock purchased by them is now worth CN¥8.59m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Tianli International Holdings

The Last 12 Months Of Insider Transactions At Tianli International Holdings

The Chairman of the Board & CEO Shi Luo made the biggest insider purchase in the last 12 months. That single transaction was for HK$4.6m worth of shares at a price of HK$3.20 each. We do like to see buying, but this purchase was made at well below the current price of HK$4.30. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Shi Luo bought 2.00m shares over the last 12 months at an average price of HK$3.36. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
SEHK:1773 Insider Trading Volume October 16th 2024

Tianli International Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Tianli International Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tianli International Holdings insiders own about HK$4.0b worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Tianli International Holdings Tell Us?

The fact that there have been no Tianli International Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Tianli International Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Tianli International Holdings that deserve your attention before buying any shares.

But note: Tianli International Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.